Aeolus saves costs through materials purchasing strategy

BEIJING — ChemChina-owned Aeolus Tyre Co. Ltd. saved more than $7.6 million in 2017 through a purchasing strategy established in 2016 following its integration with Pirelli & C. S.p.A.'s industrial unit.

In a recent ChemChina statement, the Jiaozuo-based commercial tire maker linked the gains to "collaborative purchase" of natural rubber and other raw materials.

Describing itself as "New Aeolus," the company said it had "purchased over 100,000 [units] of raw materials via an e-commerce platform between January and October 2017."

Online purchase prices were more than 4-percent lower than the SICOM Singapore exchange market price, according to the statement.

The company added that it had prioritized purchase management since its integration with Pirelli.

To further these efforts, Aeolus set up an Asia-Pacific procurement head office in Beijing. Combined, the firm said, these efforts have "significantly improved its level of purchase management."

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